Tim Mosig, Claudia Lehmann, Kathrin M. Möslein

• The emergence of FinTechs, InsurTechs and the ever-increasing regulatory pressure have accelerated insurance companies' need to innovate their business models and to find novel sources of value creation and cost-saving. This study provides a deep insight into various internal and external barriers influencing business model innovation in the German insurance industry. Results of interviews conducted with 23 experts working in established insurance firms operating in Germany showed that internal barriers constitute more of a hindrance than external barriers. This dynamic holds especially true for regulations, as the fear of breaching external regulation fosters the development of even stronger internal rules that fundamentally impede business model innovation.